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The European Union

The European Union. By Jack Duong Julia Inoue Nancy Phong. What is the European Union?. A supranational & intergovernmental union of nation-states in Europe. Established in 1992 by the Treaty on European Union (EU). Currently has 27 member countries .

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The European Union

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  1. The European Union By Jack Duong Julia Inoue Nancy Phong

  2. What is the European Union? A supranational & intergovernmental union of nation-states in Europe. Established in 1992 by the Treaty on European Union (EU). Currently has 27 member countries. Largest political & economic entity in Europe w/ 493 million people. GDP of €10.5 trillion.

  3. About the European Union Has its own currency (the euro) adopted by 13 countries. Citizens of EU directly elect the European Parliament, once every 5 yrs. They are allowed to live, travel, work, & invest in other member countries.

  4. History of the European Union Evolved from a western European trade body. After WWII, cooperation formed between countries determined to rebuild Europe & eliminate the possibility of another WW. May 9, 1950 Robert Schuman proposed joint management of France & West Germany’s coal & steel industries, a.k.a. the “Schuman Declaration”.

  5. Robert Schuman’s “Schuman Declaration” Lead to “the first concrete step towards a European federation”. Was considered the beginning of the creation of the EU. Robert Schuman

  6. Why did the European Union form? Formed because of WWII. The EU idea was born because Europeans were determined to prevent such killing & destruction from ever happening again. Earlier years, cooperation was between 6 countries & mainly about trade & the economy.

  7. Reasons for Starting the European Union To deal w/ a wide range of issues of direct importance for our everyday life. To defend the shared values of Europe such as democracy, freedom, & social justice. To promote unity & ensure that decisions are taken as close as possible to citizens. To preserve diversity.

  8. Reasons for Starting the European Union Encourages every European citizen to work together from other countries in a spirit of curiosity, openness & solidarity. EU Flag

  9. Britain joining the Eurozone (ICM polls for the Guardian and the News of the World)

  10. Reasons National pride. The U.K. Treasury pride. Strength of the sterling.

  11. Key Points for Joining A single currency would be of benefit in terms of trade, transparency costs and currency stability. Membership is in the national interest and there is popular consent. Treasury's comprehensive and rigorous assessment of the five economic tests. Whenever the decision to enter is taken by the British government, it should be put to a referendum of the British people.

  12. The 5 Tests Are business cycles and economic structures compatible so that we and others could live comfortably with euro interest rates on a permanent basis? If problems emerge, is there sufficient flexibility to deal with them? Would joining EMU create better conditions for firms making long-term decisions to invest in Britain? What impact would entry into EMU have on the competitive position of the UK's financial services industry, particularly the City's wholesale markets? Will joining EMU promote higher growth, stability and a lasting increase in jobs?

  13. Advantages and Disadvantages Advantages Currency is more useful the wider the acceptability. Rise in Trade. Disadvantages One size does not fit all. Loss of ability to adjust for idiosyncratic shocks.

  14. New Developments Doubts about the exchange rates as shock absorbers. Monetary Union => Increased Trade => Decline in Idiosyncratic Shocks. Removing exchange rate risk, stimulates the financial integration of the area, facilitating risk-sharing. Countries may wish to join (leave) a monetary union if that union offers a superior (inferior) policy framework.

  15. Critics of the EU • Critics argued that there is corruption & fraud in the EU • Resulted in some European Union Officials to resign in mass • With a new group, there were still some criticism regarding accounting policies • Europe as a whole is not a democracy, but a bureaucracy

  16. Critics of the EU France, Austria, Germany, Italy are some that argue against the Euro. Some European citizens have argue that the Euro has damage their economies United States of Europe

  17. European Union Today • Largest Exporter in the world and is the second largest importer GDP (PPP) per capita (2006)

  18. European Union Today

  19. Conclusion • For some countries, the EU have been beneficial while for other, the EU has taken a toll on them. But despite the many challenges it faces along with the advantages and disadvantages, the EU stands as one of the largest exporters and importers in this globalize world.

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